1 in 7 U.S. Homeowners Paying Late Or In Foreclosure

NEW YORK, May 19 (Reuters) - One in every 7 U.S. households with a mortgage ended the first quarter behind on payments or in foreclosure, although a peak in unemployment could mean repayment stress is easing, according to the Mortgage Bankers Association.

While the rate of new foreclosure actions has slowed, the stockpile of loans that are seriously delinquent or in foreclosure means a long path to recovery for the U.S. housing market.

"It's like shutting off the oil leak, but you still have a lot of oil in the Gulf to deal with," Jay Brinkmann, the MBA's chief economist, said in an interview.

Loans that are 90 days or more past due or in foreclosure represent a historically high 68% of all problem mortgages.

High unemployment is overwhelming efforts by lenders to alter loan terms to borrowers.